1. GOODS AND SERVICES TAX (GST)

2. Benefits To Trade To Government Reduction in multiplicity of taxes
Avoiding double taxation
More efficient neutralization of taxes especially for exports
Development of common national market
Simpler tax regime with fewer rates and exemptions
To Government
Simpler Tax system
Broadening of Tax base
Improved revenue collections (tax booster)
Efficient use of resources

3. GST - FEATURES Destination-based Taxation
Applies to all stages of value chain – primary, secondary & tertiary including retail
Applies to all supplies of goods / services (as against manufacture, sale or provision of service) made for a consideration except :
Exempted goods / services – common list for CGST & SGST
Goods / services outside the purview of GST
Transactions below threshold limits
Dual GST having two concurrent components :
Central GST levied & collected by Centre
State GST levied & collected by States

4. GST – FEATURES
CGST and SGST on intra-State supplies of goods / services in India
IGST (CGST + SGST) applicable to
Inter-State supplies of goods / services in India
Inter-state stock transfers of goods
Import of goods and services
IGST levied & collected by the Centre
Additional Tax not exceeding 1% on inter-state supply of goods – to be levied by the Centre but retained by originating State
Export of goods and services – Zero rated

5. GST – FEATURES
All goods or services likely to be covered under GST except:
Alcohol for human consumption - State Excise + VAT
Electricity - Electricity Duty
Real Estate - Stamp Duty + Property Taxes
Petroleum Products – to be brought under GST from a later date on recommendation of GSTC
Tobacco products – under GST + Central Excise

6. GST – FEATURES GST Rates – Four rates -
Merit rate - essential goods & services
Standard rate - goods & services in general
Special rate - precious metals
Nil rate - exempted goods or services